— By Plasteurope.com staff — 

In line with expectations, the business performance of plastics producer Versalis (Milan, Italy; www.versalis.eni.com) continued to decline in 2024. While the subsidiary of Italian energy giant Eni saw a slight increase in sales volume to 3.17 mn t, its adjusted EBITDA fell by one third compared with the previous year and is now EUR 814 mn in the red.

In addition, the company’s average utilisation rate declined by 2 percentage points to 50% due to a weak fourth quarter.

Related: Italian plastics and rubber machinery sector revenues expected to fall in 2024

The inadequate profit margins were unable to offset the high cost of raw materials in Europe. Versalis cites competition from companies with a more efficient cost structure as a key challenge.

In response, the company has been planning a strategic overhaul of its basic chemicals division in Italy for several months, with completion targeted for 2027. Among the measures announced are the closure of the cracker at Priolo, on the island of Sicily, as well as its sister plant in Brindisi.

However, the company is facing criticism from labour representatives, who fear this represents a sell-off of the industry – despite Versalis’s promise of EUR 2 bn in investments.